Reshoring Manufacturing: Finance Equipment in Canada

After years of outsourcing, Canadian manufacturers are rethinking offshore production.

Rising transportation costs, global supply chain breakdowns, and geopolitical uncertainty are pushing more companies to reshore operations—bringing manufacturing back to Canada.

But shifting production locally often means significant upfront investments in:

• CNC machines
• Injection molding equipment
• Robotics and conveyors
• Packaging systems
• Laser cutters, presses, or foundry machinery

The good news? You don’t have to tie up your working capital to make it happen.

In this guide, we explore:

• Why reshoring is accelerating
• What equipment is typically needed
• How financing can ease the transition
• A real-world example of reshoring through structured leasing

Why Canadian Companies Are Reshoring

✅ Global Disruption

COVID-19 exposed the fragility of global supply chains—especially in medical, food, electronics, and automotive sectors.

✅ Logistics Costs

Shipping container costs have more than doubled since pre-pandemic levels in many lanes.

✅ Domestic Control

In-house production improves quality oversight, turnaround times, and intellectual property security.

✅ Government Pressure

There’s growing support for domestic capacity—especially in critical industries like pharmaceuticals, agri-food, aerospace, and clean tech.

Common Equipment Needs for Reshoring

When businesses bring production back onshore, the most common investment areas include:

How Equipment Financing Supports Reshoring

Bringing production in-house can boost your margins and reduce overseas risk—but it requires investment in fixed assets.

Here’s how equipment financing helps:

1. Preserves Working Capital

Use monthly payments instead of upfront cash, keeping liquidity for labour, inventory, or site upgrades.

2. Matches Cash Flow Cycles

Terms can be structured to align with contract wins, seasonality, or scale-up timelines.

3. Funds Full Systems

Bundle machines, software, delivery, install, and training under one lease or loan.

4. Accelerates ROI

Start generating revenue before the equipment is fully paid off.

Explore:
Financing & Leasing
Refinancing Options

Real Case Study: Reshoring in the Medical Device Industry

Business: Ontario-based medical plastic component supplier
Challenge: COVID-19 disrupted overseas supplier reliability; delays threatened contracts
Solution: Reshored two key SKUs by financing $210,000 in injection molding and QC systems

Structure:

• 60-month term, $0 down
• Included install, training, and cleanroom integration
• Approved in 72 hours through Mehmi lender network

Outcome:
Client avoided overseas delays, landed new domestic buyers, and recovered costs within 14 months of full production.

What You’ll Need to Get Approved

✅ Equipment quote or vendor invoice
✅ 3–6 months of bank statements
✅ Business license or incorporation
✅ Personal ID (for verification)
✅ Site readiness (power, floorplan, delivery access)

If your business is newer or still building revenue, Mehmi can also help structure approvals with a co-signer, down payment, or vendor guarantees.

Total ROI Potential of Reshoring (Illustrative)

Even with a slightly higher per-unit cost, faster lead times and reduced risk often improve profit margins and client retention.

FAQs: Financing Equipment for Reshoring in Canada

Can I finance both used and new manufacturing machines?
Yes. Many lenders support used or private-sale equipment with proper documentation and condition validation.

What if I’m not replacing overseas production but adding new lines?
You can still finance the expansion—even if it's not technically “reshoring.”

Can I finance facility upgrades too?
Indirectly. Mehmi may be able to bundle HVAC, electrical work, or structural mods if they’re part of the equipment install quote.

Can I get approved even if my company is still recovering from COVID?
Yes—Mehmi works with lenders that accept 600+ credit, newer revenue, or partial operating history.

Final Word: Bring Production Home—Without Financial Roadblocks

Reshoring is more than a buzzword. It’s a real opportunity for Canadian manufacturers to control their supply chain, improve margins, and grow their business.

Financing gives you the flexibility to make bold investments—without waiting years to save up.

Looking to reshore production and need help financing the machinery?
Speak to a credit analyst or use our calculator to explore structured, low-risk financing that helps bring manufacturing home.

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